MANILA, Philippines — Members and pensioners of the Government Service Insurance System (GSIS) may now apply for a housing loan through the Home Development Mutual Fund (Pag-IBIG Fund).

In a statement, the pension fund for state workers said that Pag-IBIG Fund drew down the entire P5 billion last week which will be used to augment the funds available for housing loans of the pension fund’s members and pensioners.

This, after GSIS President and General Manager Robert Vergara and Pag-IBIG Fund Chief Executive Officer Darlene Berberabe signed a credit facility agreement on November 14 this year.

The facility was made available to Pag-IBIG in line with the GSIS’s decision to wind down its direct lending program last April in favor of forging partnerships with key shelter agencies (KSAs).

“We engaged with Pag-IBIG because of its proven expertise and housing infrastructure,” Vergara said.

In 2010, the GSIS extended only P600 million in housing loans to its more than 500 members against Pag-IBIG Fund’s P5.5 billion to over 11,000 government employees, ten times more what GSIS lent for housing to twenty times more government employees.

“This home lending program affirms our institution’s commitment to helping our stakeholders realize their dream of home ownership,” Vergara said.

“We invite all our members and pensioners, who want to avail of a housing loan to go to our partner Pag-IBIG. The GSIS has given Pag-IBIG more than enough funds to accommodate their housing needs,” he added.

GSIS chief earlier said that the pension fund was ready to extend more funding to Pag-IBIG, which will be earmarked for housing loans.

“What we do intend is subject to the speed, with which Pag-IBIG is able to deploy the fund. We can again sit down and think about a subsequent top up. At the end of the day we have to make sure that we also don't give Pag-IBIG too much money that they will not be able to deploy,” Vergara said.